Uber launches into 7 new cities in India

Today, Uber has expanded into 7 new Indian cities, which the company claims is the largest expansion project in its history. Uber’s service is now available to nearly 23 million residents in Coimbatore, Mysore, Vishakhapatnam, Bhubaneshwar, Indore, Nagpur and Surat.

“That’s a genuine commitment from one of the biggest technology companies in the world to India. We’ve seen 40% month-over-month increase in our India operations, and the new launch will only boost that growth”, Neeraj Singhal, Head of Expansion, Uber India said.

Uber is set to operate in 18 Indian cities; it’s greatest outside the United States. It however, falls short of its chief rival Ola which is currently available in 100 plus cities across the country.

According to recent statistics only 2% of Indians actually own cars as compared to roughly 80% in the US. Addressing concerns about a narrow partner base as a result Singhal observed, “Our driving partners get preferred vehicle financing rates. While do not sell, own or back the loans, we provide information to the financers about the earning potential of these drivers as they partner with us. Our financers are pleased with the vehicle sales in the commercial sector.”

Uber’s initial expansion has been bumpy after the confusion over a mish-mash of national and state regulation, chiefly designed for traditional taxis. This led to a temporary ban of such services in Delhi. Brushing aside the possibility of future problems Singhal said, “The regular scenario in India with regards to how governments embrace Uber is changing. We’ve achieved substantial progress with regards to initiating and progressing with these conversations, and as we ramp up operations in India these conversations would continue and notch up, especially on the safety front.”

Addressing possibilities of the Indian social stigma attached to being a ‘taxi driver’ withering away as more people leave cushy jobs to be chauffeurs in Uber, Singhal asserted, “Everyone wants a flexible and reliable earning potential. We’re seeing an increasing trend of white collar workers joining Uber. People are willing to buy their own vehicles on their own terms with their own cash and work flexible hours. That means one would not refer to them as taxi drivers.”

(Image credit: Indiatimes)